2. • Current & Future Environments
• Appropriate Business Strategies
• Survey Findings
• Alternative Solution
• Questions
TOPICS
3. • Significant rises in input costs
Utilities, imports, food, labour, fuel…….
Rental escalations from long term leases
CURRENT ENVIRONMENT
4. • Significant rises in input costs
Utilities, imports, food, labour, fuel (75%)
Rental escalations from long term leases
• Increased consumer pressure
Impact to discretionary spending
Reduced ability to ‘pass on’ cost increases
Changes in spending patterns – more discerning customers
• Sustained margin pressure
• Challenging and difficult trading environment
CURRENT ENVIRONMENT
5. • Clem Sunter
• Continuous period of historical growth
• Prolonged period of no / low growth
V, W, U or L…………
Continued austerity and pressure on consumers
Pockets of excellence, tourism (China), gateway to Africa
• Appropriate business strategies
Value for money
Innovation
Cheaper alternative
FUTURE ENVIRONMENT
6. VALUE FOR MONEY, INNOVATION & CHEAPER ALTERNATIVE
* Interim results August 2012 Press Release 22 October 2012 / 1st Quarter results 2013
Famous Brands:
Revenue up 17% and Operating profit up 12%*
CEO Kevin Hedderwick:
“Our solid results are attributable to continuous innovation at the front
end of the business, and enhancements at the back end of the
business, which served to drive the growth”
“Tashas is recession proof; it continues to amaze us….”
“produced astonishing growth, turning in a 22% rise in sales versus the
prior year….”
“Value is the new black (competitive trading environment and general
economic downturn has trained consumers to look for value - which they
perceive as price, quality, relevance and convenience)”
7. VALUE FOR MONEY, INNOVATION & CHEAPER ALTERNATIVE
Spur Corporation:
Revenue up 40% and diluted EPS up 35%*
Chief Executive Pierre van Tonder:
“An aggressive promotions strategy and increasing customer loyalty
resulted in the group growing it’s market share”
“the Family Card has grown to over 1.4 million and accounts for 29% of
local restaurant turnover. The loyalty programme has grown the average
spend per head. Card holders spend on average 20% more than non-
members”
* Interim results to December 2012 Press Release 7 March 2013
8. VALUE FOR MONEY, INNOVATION & CHEAPER ALTERNATIVE
Scooters Pizza (Taste Holdings):
Financial growth of over 30% after taking the
strategic decision to refresh the brand*
Christo Calitz (Food Division CEO):
“We are delighted with the success we have had with the brand refresh,
and it undoubtedly proves that it is important for brands to remain
relevant in the public eye and that committing to this principle will
ultimately result in considerable financial gain”
* Hotel & Restaurant 12 March 2013
9. • Clem Sunter – Hostex 2013
• Continuous period of historical growth
• Prolonged period of no/low growth
V, W, U or L …..
Continued austerity and pressure on consumers
• Appropriate business strategies
Value for money
Innovation
Cheaper alternative
• Business change requires investment
Requirement for funding
Accessibility of credit / capital
FUTURE ENVIRONMENT
13. BUSINESS CASH ADVANCE
Most valued features:
• Flexible repayment Payments linked to business turnover
• No security required None – can be used for any purpose
• Quick turnaround Funds available within 10 working days
• Price All costs are transparent and agreed up front
• Approval Over 80% of businesses qualify
• Established in US (1998), Europe (2007), Asia Pacific (2009), Australia (2010)
• First SA advance in August 2011 - Total advances of over R200m to date
• High quality testimonials and reference sites - Over 70% re-advance
• Offices in Johannesburg, Cape Town and Durban
• Agents in Bloemfontein, Lepalale and George
• Ideal for business types with relatively high card sales
